The average sale yard prices of lamb are forecast to fall in 2020–21 by 9% to AU$ 7.34/kg and sheep by 6% to 549 cents per kilogram. The economic impact of COVID-19 will reduce international and domestic demand for sheep meat, placing downward pressure on prices. Consumer preferences are shifting towards more affordable protein sources, including chicken and fish. An appreciation of the Australian dollar will further reduce global demand for Australian sheep meat as it becomes relatively more expensive.